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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (213731)	1/2/2013 5:42:24 PM
From: Steve Lokness	Respond to of 541777

<<<< I'm a bit surprised that you get so worked up about it. These are just interesting arguments to read and discuss.>>> Oh gosh, I'm not worked up on Krugmans comments. I'm more frustrated with Mary. But I do find Pauls comments amusing and I do think he has some kind of deep seated anger towards Obama - or maybe he is just always angry? Tell me if I'm wrong, but I think both you and Krugman think this is a contest - with a winner and loser? I don't look at it that way at all and in fact find that thinking responsible for our polarization. This country HAS to get away from this ideological grandstanding and move back to governing where compromise is not a dirty word. After all it is the compromising that Paul finds so onerous.

To: JohnM who wrote (213731)	1/2/2013 5:54:42 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 541777

If I had one new year wish for you John it would be to keep an open mind on Krugman. Is it to early to review his thinking on Greece when he suggested Greece would imminently leave the Euro? From May, here is what Krugman thought would happen; Some of us have been talking it over, and here’s what we think the end game looks like: 1. Greek euro exit, very possibly next month. 2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany. 3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals. 3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing. 4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or: 4b. End of the euro. And we’re talking about months, not years, for this to play out. krugman.blogs.nytimes.com